【SMM Analysis】The price trends of nickel, cobalt, and lithium have diverged, and the procurement volume of ternary and LFP is gradually differentiating

According to the SMM survey, in August, the recycling volume of China's lithium battery recycling market continued its prior trend, with the monthly recycling volume (in black mass terms) further declining, hitting a new low since February. The data showed the monthly recycling volume (in black mass terms) fell by around 1% MoM. Specifically, the recycling volumes of ternary and LFP black mass rose by 13% and fell by 10% respectively.
From market transactions, in August, the prices of nickel-cobalt and lithium salts diverged. Specifically, the price of cobalt sulphate remained stable, while the price of nickel sulphate, due to its low inventory levels, rebounded slightly after a prolonged decline, driving up demand for extracting cobalt and nickel from black mass by some downstream hydrometallurgical producers, which stimulated additional purchases of scrap from the ternary sector.
However, due to its pricing model, the price of LFP scrap is closely linked to lithium salts. In August, spot lithium salt prices continually dipped from around 80,000 yuan/mt, with futures prices even hitting recent lows of around 7.2 at one point. Although the futures prices rebounded slightly in mid-to-late August, actual spot transactions remained overall sluggish as downstream buyers resisted high-priced lithium salts. Some LFP hydrometallurgical producers, facing continuous losses, were forced to reduce their purchases, leading to an overall decline in procurement and slightly lowering the market's overall purchasing volume.